Wednesday, Oct 27, 2004
MARC has lifted the negative outlook placed on the ratings of AA ID (Double AA Islamic Debt)/MARC-1ID in respect of PNSB’s RM1.02 billion ABBA serial bonds and RM350 million MuCP/MTN programme and the A rating of PNHB’s RM546.875 million redeemable unconvertible junior notes. The negative outlook was placed in June 2004 pending the resolution of the group’s long outstanding trade receivables.
Bank Pembangunan & Infrastruktur Malaysia Bhd (BPIMB) has disbursed the first partial payment in relation to the proposed RM1.335 billion loan for the partial settlement of the outstanding receivables owed to PNSB. On 25 October 2004, PNSB received the partial payment amounting to RM427.2 million following PNSB’s agreement to the following conditions:
The total aggregate to be paid to PNSB in respect of the outstanding amount shall be discounted by 2%; and
PNSB agrees to waive all late payment interest on the outstanding amount and agrees that the waiver of the said late payment interest shall continue until actual payment.
Although the status of the privatization of water distribution has yet to be finalized, this partial settlement of receivables is sufficient to address the immediate concern i.e. the allocation of RM180 million (the next 12 months debt obligation) into its Debt Service Reserve Account (DSRA) by 27 October 2004 required under the terms of the issue structure.
The annual rating review exercise is presently in progress and MARC will continue to monitor developments on the resolution of the remaining outstanding receivables and privatization of water distribution and assess the impact on the ratings accordingly.
Bank Pembangunan & Infrastruktur Malaysia Bhd (BPIMB) has disbursed the first partial payment in relation to the proposed RM1.335 billion loan for the partial settlement of the outstanding receivables owed to PNSB. On 25 October 2004, PNSB received the partial payment amounting to RM427.2 million following PNSB’s agreement to the following conditions:
The total aggregate to be paid to PNSB in respect of the outstanding amount shall be discounted by 2%; and
PNSB agrees to waive all late payment interest on the outstanding amount and agrees that the waiver of the said late payment interest shall continue until actual payment.
Although the status of the privatization of water distribution has yet to be finalized, this partial settlement of receivables is sufficient to address the immediate concern i.e. the allocation of RM180 million (the next 12 months debt obligation) into its Debt Service Reserve Account (DSRA) by 27 October 2004 required under the terms of the issue structure.
The annual rating review exercise is presently in progress and MARC will continue to monitor developments on the resolution of the remaining outstanding receivables and privatization of water distribution and assess the impact on the ratings accordingly.